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Spruce Ridge Resources Announces Regulatory Approval of Option Agreement with Benton Resources for Newfoundland Property
TORONTO, Sept. 29, 2023 (GLOBE NEWSWIRE) -- Spruce Ridge Resources Ltd. (“Spruce” or the “Company”) (TSXV: SHL) is pleased to announce that, further to its news
About this update from Homeland Nickel Inc
[{"type":"text","content":" TORONTO, Sept. 29, 2023 (GLOBE NEWSWIRE) -- Spruce Ridge Resources Ltd. (“Spruce” or the “Company”) (TSXV: SHL) is pleased to announce that, further to its news release of August 17, 2023, the Company has entered into an option agreement (the “Option Agreement”) with Benton Resources Inc. (“Benton”) (TSXV: BEX) dated September 20, 2023, pursuant to which Benton has an option to earn an undivided 70% interest in Spruce’s Great Burnt Copper/Gold Property (the “Property”). Highlights of the Option Agreement Under the terms of the Option Agreement, Benton can earn a 70% undivided interest in the Property by: making a $40,000 cash payment to Spruce upon receipt of approval of the TSX Venture Exchange (the “TSXV”); issuing to Spruce 15 million common shares in the capital of Benton (“Benton Shares”) as follows: 5,000,000 Benton Shares subject to a four-month regulatory trading restriction; 5,000,000 Benton Shares subject to a four-month regulatory trading restriction plus an additional eight-month voluntary trading restriction; and 5,000,000 Benton Shares subject to a four-month regulatory trading restriction plus an additional twenty-month voluntary trading restriction; and completing $2.5 million in exploration expenditures on the Property on or before August 15, 2026, of which $1.0 million must be expended on or before August 15, 2024, subject to the right of Benton to accelerate the completion of such expenditures and share issuances. Benton has completed the cash payment of $40,000 and a total of 15 million Benton Shares have been issued to the Company. Once a 70% interest in the Property is earned by Benton, the Property will be operated as a participating joint venture (the “JV”). In the event that either party is diluted below a 10% interest in the JV, its interest would convert to a 2% net smelter returns (“NSR”) royalty on the Property. Further, the Option Agreement will continue to be subject to certain legacy NSRs, including: a 2.0% NSR royalty in favour of Glencore on certain mining leases (in addition, if commercial production commences from this lease, then a cash payment of $1.0 million or the issuance of common shares representing equivalent value must be made to Glencore); and a 0.5% NSR royalty in favour of Pavey Ark on any production from certain mining leases (Pavey Ark will retain a 2.0% NSR royalty on any produ...